The Jewish Guarantor and Secular Law: Stumbling Blocks and Their Removal

2010 ◽  
pp. 522-542
Author(s):  
Roger Lister
Keyword(s):  
Economic Value ◽  
Contingent Claims ◽  
Contingent Claim ◽  
Net Worth ◽  
Meeting Point ◽  
Future Events ◽  
Uncertain Future

Guarantees are an important interdisciplinary meeting point of economics, accounting, and law. A guarantor becomes liable for the debt of a primary debtor if the primary debtor defaults. This article focuses on the Jewish guarantor and the secular law and also their removal. A contingent claim is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence of one or more uncertain future events. The guarantee is part of the package of contingent claims that comprise the value of a business’s or an individual’s net worth. This article discusses the economic value of a guarantor and how to go about finding the perfect guarantor and go about investing one’s money. This article traces the existence of usury and the concept of guarantee in Judaism. This article also draws a comparison between Judaic and English laws pertaining to money lending which concludes it.

The orbitofrontal cartographer

2020 ◽  
Author(s):  
Matthew P H Gardner ◽  
Geoffrey Schoenbaum
Keyword(s):  
Orbitofrontal Cortex ◽  
Economic Value ◽  
Cognitive Map ◽  
Credit Assignment ◽  
General Consensus ◽  
Future Events ◽  
Causal Structures ◽  
Precise Content ◽  
Successes And Failures

Theories of orbitofrontal cortex (OFC) function have evolved substantially over the last few decades. There is now a general consensus that the OFC is important for predicting aspects of future events and for using these predictions to guide behavior. Yet the precise content of these predictions and the degree to which OFC contributes to agency contingent upon them has become contentious, with several plausible theories advocating different answers to these questions. In this review we will focus on three of these ideas - the economic value, credit assignment, and cognitive map hypotheses – describing both their successes and failures. We will propose that these failures hint at a more nuanced role for the OFC in supporting the proposed functions when an underlying model or map of the causal structures in the environment must be constructed or updated.

scholarly journals Optimal Design of a Forest-Based Biomass Supply Chain Based on the Decision maker’s Viewpoint Towards Risk

2019 ◽  
Vol 66 (4) ◽  
pp. 509-519 ◽  
Author(s):  
Shaghaygh Akhtari ◽  
Taraneh Sowlati ◽  
Verena C Griess
Keyword(s):  
Supply Chain ◽  
Decision Maker ◽  
Decision Rules ◽  
Energy Prices ◽  
Biomass Supply ◽  
Management Literature ◽  
Future Events ◽  
Uncertain Future ◽  
Biomass Availability

Abstract Economic viability is one of the main considerations in bioenergy and biofuel projects and is impacted by uncertainty in biomass availability, cost, and quality, and bioenergy and biofuel demand and prices. One important aspect of decisionmaking under uncertainty is the viewpoint of the decision maker towards risk, which is overlooked in the biomass supply chain management literature. In this paper, we address this gap by evaluating alternative supply chain designs taking into account uncertain future conditions resulting from changes in biomass availability and cost, and bioproduct and energy prices. Three decision rules, maximax, minimax regret, and maximin, representing, respectively, optimistic, opportunistic, and pessimistic perspectives, are used for evaluation. It is assumed that the decision maker has knowledge about the potential future events, but the likelihood of their occurrence is unknown. According to the results of the case study, investment in bioenergy and biofuel conversion facilities was recommended based on optimistic and opportunistic viewpoints. Production of both bienergy and biofuels would not be profitable under pessimistic conditions. Therefore, investment in only bienergy facilities was prescribed under pessimistic conditions.

The European Court of Human Rights as Governor of Risk

2017 ◽  
Author(s):  
Mónika Ambrus
Keyword(s):  
Human Rights ◽  
Theoretical Framework ◽  
European Court ◽  
Future Events ◽  
Uncertain Future ◽  
Ultimate Purpose

This chapter analyses the ‘risk dispositief’ of the European Court of Human Rights and explores the ways in which the Court governs risk. It begins with an exploration of the specific features of governing uncertain future events that are adopted by the Court, including the identification of the forms of risk that the Court incorporates in its mode of governance and the manner in which it allocates responsibility for these risks. It then examines the manner in which the Court’s risk dispositief creates new subjectivities and redefine relationships. The Foucauldian concept of governmentality provides the theoretical framework for exploring the Court’s risk dispositief, and provides a tool for analyzing the Court’s techniques of risk governmentality. The ultimate purpose of this enquiry is to ascertain how the Court addresses risk-related complaints and how it conceptualises risk in different contexts.

scholarly journals Prediction Markets

2004 ◽  
Vol 18 (2) ◽  
pp. 107-126 ◽  
Author(s):  
Justin Wolfers ◽  
Eric Zitzewitz
Keyword(s):  
Market Design ◽  
Regression Coefficients ◽  
Prediction Markets ◽  
Design Issues ◽  
Future Events ◽  
Uncertain Future ◽  
Insight Into ◽  
Usual Problem

We analyze the extent to which simple markets can be used to aggregate disperse information into efficient forecasts of uncertain future events. Drawing together data from a range of prediction contexts, we show that market-generated forecasts are typically fairly accurate, and that they outperform most moderately sophisticated benchmarks. Carefully designed contracts can yield insight into the market's expectations about probabilities, means and medians, and also uncertainty about these parameters. Moreover, conditional markets can effectively reveal the market's beliefs about regression coefficients, although we still have the usual problem of disentangling correlation from causation. We discuss a number of market design issues and highlight domains in which prediction markets are most likely to be useful.

VALUES OF MORTGAGES WITH TOP-UP PAYMENT OPTIONS

2006 ◽  
Vol 09 (05) ◽  
pp. 801-824
Author(s):  
ROSE NENG LAI ◽  
SEOW ENG ONG ◽  
TIEN FOO SING
Keyword(s):  
Economic Value ◽  
The Other ◽  
Contingent Claim ◽  
Property Value ◽  
Put Option ◽  
A Value ◽  
The Difference ◽  
The Right ◽  
Early Default ◽  
Mortgage Contract

The right of lenders to request for top-ups of negative equity when the property value falls below the loan outstanding is a little known, yet widely adopted provision in mortgage documents in many Asian markets. We analyze the effect of the top-up option by appealing to a contingent claim framework. Specifically, we model the top-up option as a synthetic option comprising a long put to request for a top-up, a short put that cancels out the first option in the event of a default, and a binary put option once triggered will yield a value equivalent to the difference between the mortgage outstanding and the property value. The results of comparative analyses show that the lender's right to request for top-ups is valuable when the negative mortgage equity increases, especially in a market where price is highly volatile. The top-up clause fundamentally affects the mortgage values for both the borrower and the lender. We show that lender's inaction by not calling for top-ups when negative mortgage equity occurs is suboptimal. On the other hand, the lenders' exercise of the in-the-money top-up options may lead to early default by the mortgagor. This is one of the reasons why lenders exercise this option only very sparingly in practice. This mortgage design has economic value to the lenders, it is, however, not optimal in time of volatile market. The policy implication of the findings is that the sub-optimal top-up feature should be removed from the mortgage contract, and it will not severely jeopardize the lender's ability to enforce payments in the mortgages.

scholarly journals On Utility-Based Superreplication Prices of Contingent Claims with Unbounded Payoffs

2007 ◽  
Vol 44 (4) ◽  
pp. 880-888 ◽  
Author(s):  
Frank Oertel ◽  
Mark Owen
Keyword(s):  
Utility Function ◽  
Financial Market ◽  
Weak Topology ◽  
Contingent Claims ◽  
Contingent Claim ◽  
Asymptotic Elasticity

Consider a financial market in which an agent trades with utility-induced restrictions on wealth. For a utility function which satisfies the condition of reasonable asymptotic elasticity at -∞, we prove that the utility-based superreplication price of an unbounded (but sufficiently integrable) contingent claim is equal to the supremum of its discounted expectations under pricing measures with finite loss-entropy. For an agent whose utility function is unbounded from above, the set of pricing measures with finite loss-entropy can be slightly larger than the set of pricing measures with finite entropy. Indeed, the former set is the closure of the latter under a suitable weak topology. Central to our proof is a proof of the duality between the cone of utility-based superreplicable contingent claims and the cone generated by pricing measures with finite loss-entropy.

ROLE OF INFORMATION IN PRICING DEFAULT-SENSITIVE CONTINGENT CLAIMS

2015 ◽  
Vol 18 (01) ◽  
pp. 1550007 ◽  
Author(s):  
MONIQUE JEANBLANC ◽  
MARTA LENIEC
Keyword(s):  
Financial Market ◽  
Stock Price ◽  
Stopping Time ◽  
Contingent Claims ◽  
Contingent Claim ◽  
Martingale Measures ◽  
Equivalent Martingale Measures ◽  
Equivalent Martingale ◽  
Role Of Information

We consider a financial market with a savings account and a stock S that follows a general diffusion. The default of the company, which issues the stock S, is modeled as a stopping time with respect to the filtration generated by the value of the firm that is not observable by regular investors. We assume that the stock price and the value of the firm are correlated. We study three investors with different information levels trading in the market who aim to price a general default-sensitive contingent claim. We use the density approach and Yor's method to solve the pricing problem. Specifically, we find the sets of equivalent martingale measures in three cases and, when needed, we choose one of them using f-divergence approach.

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